HomeMy WebLinkAbout1997-163 Resale Restr - Owen PROMISSORY NOTE
SECURED BY DEED OF TRUST
Ashland, Oregon, /()-- /~/ ,1997
For value received, I promise to pay to the order of the City of Ashland, Oregon,
("City"), at City Hall or such other place as the City may designate, the principal sum
of'~rJ~r~ '~o~,.~,~ ~ /,~,Z,~,-~ ~/~,,%,'~' ~, ',:'d- ¥ '~///~ ($ S. t~ ~I ), plus
accrued ~nterest, upon the terms and c'(:~d~ons set forth below.
1. AFFORDABLE HOUSING AGREEMENT. This obligation is secured by a Trust Deed
and is subject to all the terms and conditions of such Trust Deed. This obligation is
given pursuant to a "CITY OF ASHLAND AFFORDABLE HOUSING RESALE
RESTRICTION AGREEMENT (SDCs ONLY)" and is subject to all the terms and
conditions of such agreement (further referred to in this note as "the Agreement"). The
promisor shall have the right to prepay all or any portion of the unpaid principal of this
note without penalty. However, any payments shall be applied first to accumulated
interest and then to principal.
2. INTEREST. The unpaid principal balance of this note shall bear simple interest at
the rate of six percent (6.0%) per year from the date of this note until paid.
3. REPAYMENT.
3.1. During the first 20 years after this note is executed, no payments of either
principal or interest shall be due or payable so long as I continue to own and occupy
the home as my primary residence, and so long as I am not in violation of any of the
terms of this note or the trust deed securing it. As set forth in the Agreement, I may
also make a qualified transfer of the home to an eligible buyer who shall assume this
note without violating the terms of this note.
3.2. During the first 20 years after this note is executed, the total amount of the
principal and accrued interest shall become immediately due and payable in full upon
my transfer of the home to any person or entity other than an eligible buyer as defined
in the Agreement or to an otherwise eligible buyer who does not assume this note and
the trust deed securing it and agree to comply with all of its terms, or whenever I
cease to occupy the home as my primary residence, or whenever I am in default for
failure to comply with any of the terms of this note or the trust deed. At the end of 20
years following the date of execution of this note, if I am at that time the owner and
occupier of the home and am not in default under any terms of this note or the trust
deed, this note and my obligation to pay the principal and accrued interest shall be
cancelled and forgiven by the City.
4. BINDING EFFECT; JOINT AND SEVERAL OBLIGATIONS. This note and its terms
shall be binding upon my heirs, executors, administrators, personal representatives,
successors, and assigns. Throughout this note, the terms "1," "me," and "my" refer
PAGE 1 of 2-Promissory Note (p:plannin~\afforev.not) (Rev'd 8/97)
individually and collectively to all persons who sign this note, and all persons signing
this note shall be jointly and severally liable for its obligations.
5. A'I-FORNEY FEES AND COSTS. If either party is required to initiate legal
proceedings to enforce its rights under this Agreement, the prevailing party in such
action shall be entitled to an award of reasonable attorneys' fees and costs in addition
to any other recovery under this Agreement.
11. SEVERABILITY; GOVERNING LAW. If any provision of this note is or becomes
inconsistent with any applicable present or future law, rule or regulation, such
provision will be deemed rescinded or modified in order to comply with the relevant
law rule or regulation, and all other provisions of this note shall continue in full force
and effect. This note shall be governed by and interpreted under the laws of the State
of Oregon.
14. NO WAIVER. Failure by the City to require strict performance of any term of this
note, including the extension of any payment or acceptance of any part of a payment,
shall not affect the City's rights or be considered a waiver by the City of the strict
performance of all conditions of this note. No waiver by the City of any default shall be
considered a waiver of any subsequent default or a waiver of this paragraph.
EXECUTED this __ day of , 1997.
NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING
RESALES AND ASSUMPTIONS.
Signature
Signature
Printed Name
Printed Name
PAGE 2 of 2-Promissory Note (p:planning\afforev.not)(Rev'd 8/97)
CITY OF ASHLAND AFFORDABLE HOUSING
RESALE RESTRICTION AGREEMENT (SDCs ONLY)
Owner: SARAH LINDA P. OWEN
1302 MILLPOND ROAD
Agreement date:
Name of development: (__~eof-
Recording Requested by:
When Recorded Return to:
Property Address:
Purchase Price: ,~"~,R c~O O
Date of Purchase: ~/{~
Ci~ of Ashland
Affordable Housing Coordinator, Ci~ of Ashland,
20 E. Main Street, Ashland, Oregon 97520
Agreement entered into on the date specified above by the City of Ashland ("City") and
the Owner (also referred to as "You") named above regarding certain improved real
property located at the property address specified above ("the home").
RECITALS:
A. The home referred to in this agreement is described more fully on the
attached Exhibit A.
B. The home is being made available for purchase by an eligible
moderate-income purchaser pursuant to the City's Affordable Housing Program
("Program"). The Owner is an eligible moderate-income purchaser under the Program
and intends to live in the home as an owner-occupant.
C. The Owner recognizes that in purchasing the home, the Owner is receiving
the benefits of the City's assistance to the developer of the property upon which the
home is located, and that without such assistance the Owner would not have been
able to purchase the home. The Owner understands that signing this Agreement and
complying with its terms are necessary to permit the City to fulfill its affordable housing
goals.
City and Owner agree:
1. Occupancy Requirement. You agree and acknowledge that the City's acceptance
of your participation in the Program and purchase of the home is conditioned upon
your continuing occupancy of the home. For purposes of this agreement, continuing
occupancy includes renting of the home by the Owner to others if you have
established a temporary residence outside Jackson County, Oregon. Any such rental,
however, shall not exceed 24 months in any five year period.
2. Deferment of Systems Development Charges (SDCs). City will defer the
payment of SDCs owed by you and due on the home. You will execute a promissory
PAGE 1-RESALE RESTRICTION AGREEMENT (p:planning~aff-sdc.fk)(1997)
note payable to City in a principal amount equal to the total cost of the SDCs that
have been deferred. The note and the obligations under this Agreement will be
secured by a trust deed on the home.
3. SDCs Due Upon Transfer of Home. Except as provided in paragraph 4, you agree
to pay to the City when you "transfer" the home any amount due from the promissory
note referred to in paragraph 2.
3.1. Definition of transfer. To "transfer" the home means any sale, assignment or
transfer, whether voluntary or involuntary, of any interest in the home, including, but
not limited to, a fee simple interest, a co-tenancy interest, a survivorship interest, a life
estate, a leasehold interest (except as provided in paragraph 1), any right to
possession under a rental agreement (except as provided in paragraph 1), or an
interest evidenced by a mortgage, trust deed or land sale contract in which
possession of the home is transferred and you retain title.
3.2. Assumption requirement. This agreement shall apply to and bind any
purchaser or transferee in an exempt or qualified transfer (see paragraph 4). Such
purchaser or transferee shall assume your duties and obligations under this
Agreement in writing, or sign an agreement substantially similar to this Agreement,
prior to the transfer of the home. If the purchaser or transferee fails to assume this
Agreement or execute and deliver a substantially similar agreement to the City prior to
the sale or transfer, then you shall pay any amount due from the promissory note
referred to in paragraph 2.
Recording of the assumption agreement in the official records of Jackson County,
Oregon, shall be a condition of the City's approval of the proposed transfer. You
agree to pay a reasonable assumption fee to the City and to reimburse the City for its
expenses incurred in administering its rights and obligations in connection with any
transfer under this Agreement. Upon the close of any transfer, you agree to provide
the City with copies of the recorded trust deed, final sales contract, settlement
statement, escrow instructions, and any other documents prepared or used in
connection with the transaction.
4. Exempt
however, if
provided in
and Qualified Transfers. No amount shall be due under paragraph 3,
the transfer is either an "exempt transfer" or a "qualified transfer" as
this paragraph:
4.1. Exempt transfer. An "exempt transfer" is:
4.1.1. A transfer by gift or inheritance to your spouse or children;
4.1.2. A taking of title by a surviving joint tenant; a court-ordered transfer
of title to a spouse as part of a dissolution proceeding; or an acquisition of title,
or of any interest in the title, in conjunction with marriage.
PAGE 2-RESALE RESTRICTION AGREEMENT (p:planning~aff-sdc.fkX1997)
4.1.3. A refinancing of the existing purchase money first mortgage or
trust deed encumbering the home by securing a new first mortgage or trust
deed on the home in an amount not greater than the then present balance of
the first mortgage or trust deed plus applicable loan fees and closing costs. An
exempt transfer also includes a home equity loan secured by a third mortgage
or trust deed on the home, which shall be subordinate to this note and the trust
deed securing it provided that the proceeds of such home equity loan shall only
be used for improvements to the home, including landscaping.
4.2. Qualified transfer. A "qualified transfer" is a transfer to an eligible buyer for a
sales price that does not exceed the affordable housing purchase price as determined
by Ashland City Council Resolution number 93-39 including amendments, if any. A
qualified transfer must also meet the requirements set forth in this paragraph. At least
30 days prior to the transfer, you shall provide the following information to the City:
4.2.1. The name, address and telephone number of the proposed buyer;
4.2.2. A financial statement signed by the proposed buyer and his or her
spouse, if any, in a form acceptable by the City and accompanied by such
supporting documentation as requested by the City. The financial information
shall be used by the City to determine the income eligibility of the proposed
buyer. To be an eligible buyer, a buyer shall certify that he or she will occupy
the home as his or her principal home. The buyer and all other members of the
buyer's household shall meet the income guidelines established from time to
time by the City for participation in its affordable housing program.
4.2.3. A copy of the proposed sales agreement and all related
documents, which set forth the terms of the transfer;
4.2.4. A written certification signed by the proposed buyer and you in a
form acceptable to the City stating that:
4.2.5. The transfer shall be closed in accordance with the terms of the
sales agreement and other documents submitted and approved by the City;
4.2.6. Neither the proposed buyer nor any other party has paid or will
pay to you or for your benefit, and you have not received nor will you receive
from the proposed buyer or any other party, either directly or indirectly or for
your benefit, money or any other consideration in addition to what is set forth in
the sales agreement and related documents;
4.2.7. In the event that a transfer is made in violation of the terms of this
agreement, or that false or misleading statements are made in any documents
or certifications submitted to the City, the City shall have the right to file a legal
action to force the parties to terminate or rescind the sales agreement, or to
declare the sale void notwithstanding the fact that the sale may have closed and
become final as between the buyer and you.
PAGE 3-RESALE RESTRICTION AGREEMENT (p:planning~3ff-sdc.f~){1997)
5. You Must Notify City of Transfer. If you desire to transfer the home, you are
required to notify City in writing to that effect. If the transfer is a qualified transfer, the
notice and information provided must comply with paragraph 4.2. For any other
transfer the notice shall state the street address of the home, your full name or names,
the address and telephone number at which you are to be contacted if not at the
home. The notice shall be given at least 30 days prior to the transfer and shall be
delivered as provided in paragraph 9.
6. Priority and Effectiveness of this Agreement. This Agreement, or a memorandum
of this agreement, shall be filed for recordation in the County Clerk deed records,
Jackson County, Oregon prior to any sale, conveyance, transfer or other disposition of
the home, or of any estate or interest in the home, by you. The Agreement shalJ have
priority over any subsequent sale, conveyance, transfer, lease or other disposition or
encumbrance of the home, or of any estate or interest in the home.
7. Term of Agreement. The restrictions contained in this Agreement shall continue for
a period of 20 years from the date of this Agreement.
8. Survival of Agreement Upon Transfer. The City's rights under this Agreement
shall survive any transfer of the home by you.
9. Notices. Except as otherwise specified in this Agreement, all notices required to be
sent pursuant to this Agreement shall be made by personal delivery or by deposit in
the United States mail, first class postage prepaid, and shall be deemed to have been
delivered and received on the date of personal delivery or five days after deposit in the
mail, if sent to the following addresses:
City:
Affordable Housing Coordinator
City of Ashland
20 E. Main Street
Ashland, Oregon 97520
OWNER: at the address of the home
The addresses above may be changed by notice given pursuant to this paragraph.
10. Waiver. No condition of this agreement or of the note or trust deed shall be
deemed waived unless expressly waived in writing by City.
11. Default. A default shall occur if you fail to perform or observe any of the provisions
of this agreement, the note or trust deed. If any default occurs, City may, at its option,
declare the entire unpaid balance of principal and accrued interest on the note
immediately due and payable and enforce any of the remedies set forth in the trust
deed.
PAGE 4-RESALE RESTRICTION AGREEMENT (p:planning\aff-sdcfk)(1997)
12. Binding Effect. Throughout this Agreement, the terms "Owner" and "you" refer
individually and collectively to all persons who sign this Agreement and all persons
signing this Agreement shall be jointly and severally liable for its obligations.
13. Attorneys' fees. If either party is required to initiate legal proceedings to enforce
its rights under this Agreement, the prevailing party in such action shall be entitled to
an award of reasonable attorneys' fees and costs in addition to any other recovery
under this Agreement.
OWNER:
State of Oregon
County of Jackson
This instrument was acknowledged before me on (~C_~. / c/, 1997,
~ OFFICIAL SEAL ..... ',~
~// couM~ss~ NO. ~m ~
State of Oregon
Coun~ of Jackson
This.inst(ument was acknowledged before me on ~. / ~ , 1997,
Ashland, Oregon. ~ ~
.~~ SON~A N AK~AN ~
~ N~~~~~~,~O~. ~ No[a~ P~lic for Oregon
~~~ ~MMISSlON NO. ~1~ ~
My
CITY OF ASHLAND:
'!,tie: ~',~ ~ ~'~. ,~,,,._~...~
Notary P~lic for Oregon
My commission expires:
of the City of
PAGE 5-RESALE RESTRICTION AGREEMENT (p:planning~ff-sdc.fkX1997)
EXHIBIT "A"
Lot Fifteen (15) in CLEAR CREEK SUBDIVISION, a Planned Community to the
City of Ashland, Jackson County, Oregon, according to the official plat thereof, now
of record, together with the right of easement of enjoyment and use in the common
areas, as more fully set forth in the Declaration of Covenants, Conditions,
Restrictions, and Easements for said Subdivision recorded August 19, 1993 as No. 93-
27589 of the Official Records of Jackson County, Oregon.
Assessor's Map # 39 1E 10B, Tax Lot # 3900
1302 Millpond Road